4. On the 1 January 2019 Sue Sepik commenced in business. During the year ended 31...
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4. On the 1 January 2019 Sue Sepik commenced in business. During the year ended 31 December 2019 the following transactions occurred: Lodgement by Sue on 1 January 2019 of €150,000 of her savings into the business bank account. Purchase of equipment by cheque €100,000. Purchases of stock on credit €300,000. Sales on credit €500,000. Payments to creditors for stock €180,000. Payments to employees (wages) €160,000. Rent paid €55,000. Insurance paid €24,000. Payments to Sue (drawings) €45,000. Cash received from debtors €320,000. Amount borrowed from bank €120,000. Loan repayments €35,000 (including interest of €12,000). Notes: (1) All money received is lodged. (2) All payments are made by cheque or bank transfer. (3) Closing stock was valued at £90,000. (4) Depreciation is calculated at a rate of 20% per annum on cost. Required: (a) Prepare calculations for the bank, debtors, creditors and loan. (b) Prepare a profit and loss account for the year ended 31 December 2019. (c) Prepare the balance sheet as at 31 December 2019. (10 marks) (10 marks) (10 marks) 4. On the 1 January 2019 Sue Sepik commenced in business. During the year ended 31 December 2019 the following transactions occurred: Lodgement by Sue on 1 January 2019 of €150,000 of her savings into the business bank account. Purchase of equipment by cheque €100,000. Purchases of stock on credit €300,000. Sales on credit €500,000. Payments to creditors for stock €180,000. Payments to employees (wages) €160,000. Rent paid €55,000. Insurance paid €24,000. Payments to Sue (drawings) €45,000. Cash received from debtors €320,000. Amount borrowed from bank €120,000. Loan repayments €35,000 (including interest of €12,000). Notes: (1) All money received is lodged. (2) All payments are made by cheque or bank transfer. (3) Closing stock was valued at £90,000. (4) Depreciation is calculated at a rate of 20% per annum on cost. Required: (a) Prepare calculations for the bank, debtors, creditors and loan. (b) Prepare a profit and loss account for the year ended 31 December 2019. (c) Prepare the balance sheet as at 31 December 2019. (10 marks) (10 marks) (10 marks)
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Auditing Assurance Services and Ethics in Australia an Integrated Approach
ISBN: 978-1442539365
9th edition
Authors: Alvin A Arens, Peter J. Best, Greg Shailer, Brenton Fiedler
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